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tv   CNN Newsroom With John Berman and Poppy Harlow  CNN  August 8, 2018 6:00am-7:00am PDT

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>> all right, good wednesday morning everyone. i'm poppy harlow in new york. the morning after the last special election before the november midterms, we don't know who is elected but for democrats it was special. with all the precincts reporting but with several thousand absentee information ballots, republican troy balderson holds a one percentage point lead over democrat danny o'connor in the race for an open u.s. house seat in the 12th district of ohio. it's a district president trump won by 11 points and the retiring republican congressman won by 35 points. no democrat has won in decades. balderson and the president are claiming victory this morning. oc'connor is not conceding and o one else is calling this race over. want a closer race? look no further than the gubernatorial primary in kansas. a fraction of a point separates the candidate backed by the president kris kobach from jeff collier who happens to be the incumbent and to michigan we go where the democratic
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gubernatorial race was not close at all and that, too, may be telling. voters overwhelmingly chose the so-called establishment candidate gretchen whitmer over the progressive choice backed by bernie sanders among others. let's start in ohio with ryan noble nobles. >> this race isn't called because there is a masmall marg between troy balderson and danny o'connor. it's a 1700 vote lead. the reason the election can't be certified yet is there are 8,000 professional and absentee ballots that have yet to be counted and it will take a week for all of that counting to take place and then the other variable that could take place that is if the margin shrinks to less than half a percentage
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point an automatic recount could take place. if its stays less than a percentage point, danny o'connor could request a recount. they haven't decided whether or not they'll go down that road but that's why we're not able to declare a winner. we should point out most election experts view this lead by troy balderson as relatively safe, including our john king, 1700 votes is a big margin to mike up in this professional and absentee ballots counting but they have to count the votes before we can declare a winner. >> what are the candidates saying? i know balderson has his opinion. >> they're talking about donald trump's influence in this race and the president was on twitter last night trying to at least spin his influence and make it seem as though had he not come in to help troy balderson than perhaps this race would have gone the other direction but listen to what both candidates had to say about the president when it comes to ohio's 12th
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district. >> i don't think he knows what he's talking about. you can fly in, hang out here for a couple hours, fly out, you don't walk on our roads. you don't have kids that go to our schools, you don't deal with the public health crisis with addiction that we have here in our state every single day. i think it's more important to have grass-roots conversations and troy balderson can have all the people he wants fly in from d.c. i don't think it makes too much of a difference. >> i like to thank president trump. [ cheers and applause ] . america is on the right path and we'll keep it going that way. >> of course balderson doesn't appear to be tracking away from president trump at all but the reality is this has been a saea safely in republican hands for five years. republicans spent $5 million on this race, democrats spent about a million and republicans are
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squeaking out perhaps a 2,000 vote lead. the big variable, the big difference is president trump and that could tell us how things will go in the november midterms, poppy? >> ryan nobles, thank you so much for the reporting on the ground there. president trump is taking credit, as ryan just said for what he is calling a republican win in ohio 12. but cnn, no other news outlet calling this race yet. let's go to abby phillip from new jersey where the president is still on his working vacation. when you look at the candidates that won, he backed them by and large. in ohio, too close to call. should the president celebrate just yet? >> he's putting as positive a spin on this as he can but it seems very much this race was a squeaker, even if troy balderson comes out as the victor as it looks like he might. president trump's presence may have only helped edge him out to a victory. this is a president who said in
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recent days that he think there is might be a red wave in november not a blue wave but the president is doing on twitter over the weekend what he has done a lot in the past when he's been asked to endorse the establishment candidate like someone like troy balderson. he's saying if i didn't do it, this would have been a loser for him. he was down in early voting 64 to 36 and his presence saturday made a huge difference. republicans, though, are worried. this is a district president trump won by 11 points in 2016. now traditional republican, really just squeaking by and president trump saying to republicans it could be worse if i'm not on the ground for you. >> and how do you expect this to affect -- look, the president has already been very vocal about how much he plans to be out in the 60-day push, but how does this affect that? >> this is going to be a balancing act for republicans.
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there are going to be some places president trump is needed and places like ohio 12 where president trump's presence is a little bit of a gamble. president trump said recently he wants to be out five or six times a week on the campaign trail everyday. he thinks his presence is going to make the difference but i think this race is a clear indication that it can be very tricky for republicans, these suburban districts are potentially problematic for him and he's not making up a huge difference here. if there are other races that he -- other districts that he won by fewer than 11 points, a lot of republicans are pretty worried and may not be calling president trump to help them campaign come november. >> but he might come even if they don't call, as we saw in ohio. thanks, abby. thank goodness for these three gentlemen. let's pull them up. thank you for waking unfor me this morning. >> i never went to bed.
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>> you snoozed in the makeup room. >> there's a bag of wendy's down stairs. >> spicy chicken sandwich. >> leave it alone. >> i had two of them. fantastic. >> we have a lot to get to. looking in ohio, so much money, so much time, so much energy spent for a three month job. these guys face off. >> i thought the statement by the congressional leadership fund which is a big republican focused house super pac and the thing they said was look, we're happy you won troy balderson but we don't have 3.3 plld to everyone who is is a district that donald trump won by 11 points. you have lots and lots of
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republicans getting outraised by their democratic challengers. two, special elections are called special elections for a reason. there was one big house race general election last night so if you are the congressional leadership fund or the democratic congressional committee you can spend your money there. you don't that luxury when you're looking at a playing field getting bigger and bigger and tilting more and more towards democrats. >> if balderson survives a win is a win, right? or a win isn't a win here? >> look, you'll take a win, it's an extra incumbent running in the fall, the net gain stands at 23 the democrats need instead of going down to 22. the fact is that this is a district that's been held by republicans since the 1980s, a district on the presidential level that donald trump won by 11. if you look at the races dating back to 2012, the average republican has won by greater than 20 percentage points. there are a lot more districts. in fact, there are 70 more districts that republicans currently hold where hillary clinton did better than this particular district so if the best that they can do here is
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basically a slight win, that is not good news for republicans come fall. >> and when you look nationwide at this big picture you've got the democrat who beat the party's 2016 performance by double digits. the "washington post" this morning is saying the house and perhaps even the senate are within their grass in november so, yes, nationwide. what does this tell us about november big picture? >> i think pause on the senate for a couple difference reasons. republicans are only defending nine seats. democrats are defending 23, 24 seats, ten in states president trump won. republicans should be on offense. the map has shifted. democrats are in a better place because of the national mood but we aren't there yet. on the house, if you combine what harry and chris have said about the ability to play in so many races.
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if you look at the kind of trump base rural areas, look into lincoln county, they didn't have -- those counties probably gave him the win, pushed him over the top, they were not turning out with major -- the way the democrats are. >> so if you look at the fact that there are 70 races that trend better than democrats and the pro-trump base isn't turning out with the same enthusiasm, that's a problem and the president clearly came in to help those rural areas turn out and that turnout probably did lead to balderson's win but -- >> but a win that hasn't been called yet. >> alleged win. maybe win. >> even if he does win, i think what you cannot do if you are a smart republican is a mistake winning a battle for winning the war. look, we all like sports.
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you're much better off winning than losing but you can't think that this -- if you're a republican who sits in a district that is less good for your party than this one you can't think, whoo, troy balderson won. >> i'm good. >> no. the lessons -- the suburban lesson that phil highlights, the turnout lessons, the money lessons all still suggest this is going to be a good election for democrats. that's not a debate. the debate is how big does the wave get? and i don't know that last night proves it gets smaller. >> harry, talking about canvas canvakansas. >> that's a close race. >> you have to president's pick kris kobach who led briefly the voter fraud investigation that found nothing and there was no reason to set it up but i digress. he is running 500 points ahead against -- >> now 200. >> okay, now down 200. democrats are rooting for him.
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explain. >> because he's the least popular politician in the state and they believe if chris ckris is the republican nominee, they have a shot to win that race. kansas voted donald trump by 20 percentage points but they've won democrat there is before, kathleen sebelius was the governor there in 2002 to 2006. there also could be a prolonged recount where republicans have infighting and that's the recipe for success for democrats. it's not a guarantee, it's still kansas but it gives them a shot. >> phil, your typical home is not here. i think you live, breathe, eat, sleep on capitol hill. >> don't hold that against me. >> you're home with your kids a lot, too, but looking at this nationally, are -- it's been a
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long time since tip o'neill observed all politics is local. is this about national trends? >> everything i've heard when i've gone on the ground in districts and when you talk to members before they went on recess that s that this is a referendum on the president. first time midterms actually are and that's why first term midterms generally the party of power in the white house takes a big hit. a good sign things are not heading in your direction is when you come out of closed door meetings and say we are only going to focus on localizing our races. if you go back to 2010 you saw democrats saying that. in more in 2014, too. in 2018 when kevin mccarthy and folks coming out of nrcc meetings saying this is about localizing our races, raising money and talking about the issues that matter in our districts, that means you have a problem. now they have good "frontline" candidates that are at risk that could win, could win because they raise money. when you look at the sheer scope and scale of the map, when
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you're talking about the need to localize races at a time when it's very much a national conversation, that adds to the hurdles. >> hard to localize elections with donald trump in the white house. >> there you go. >> hard to do it anyway now but -- >> quickly, chris, the union vote in missouri. >> yeah, i think not unimportant. this is -- right to work is something that -- >> a big deal after the supreme court decision. >> huge deal. and we've seen union power somewhat reduced in elections. in the 1990s democratic endorse ment left. so what's difficult is this is missouri. josh hawley, they got the candidate they wanted, republicans did. when you have enough elections, there's the good over here where you can say right to work gone. that's great. good organizing principle for democrats. on the other side it's hard to
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say josh hawley wasn't the best candidate for republicans and claire mccaskell still isn't vulnerable. harry and i talk about this offline. with these elections you can kind of pick what you want. balderson won ohio maybe. balderson is ahead -- >> you guys are going to get me in trouble -- >> but that's not the end of the story. you can take what you want and the missouri right to work same thing. you take what you want from it. we'll see, we only have 90ish days before -- we're going to find more out soon. >> more wendy's. >> go to wendy's, go to sleep -- >> double spicy chicken. >> disgusting. not healthy. >> oh, really? >> back to earth here. minutes from now, paul manafort's deputy rick gates returns to the stand for a third straight day as he lays out for the first time the roam he and manafort he says had and talks about the detail of it within the trump campaign.
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also there is no relief in sight for the firefighters on front lines in california. it could take weeks to get the state's largest fire ever contained. and of course we are following the results in ohio as they pour in, a thrace is too clorace tha call. can democrats eke out a win? i'll have ask the vice chair of the democratic national committee. movie theaters, exercise rooms and swimming pools, public cafes, bars and bistros even pet care services. and there's never been an easier way to get great advice. a place for mom is a free service that pairs you with a local advisor to help you sort through your options and find a perfect place. a place for mom. you know your family we know senior living. together we'll make the right choice.
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we can'twhy?y here! flat toilet paper! i'll never get clean! way ahead of you. charmin ultra strong. it cleans better. it's four times stronger and you can use less. enjoy the go with charmin. welcome back. we are minutes away from rick gates taking the witness stand again for a third straight day to resume what has been an explosive cross-examination of paul manafort's former right hand man and manafort's lawyers are expected to pick up where they left off, trying to smear gates' credibility. let's go to the rouse in alexandria, virginia, joe johns with me outside. what are we expecting today? >> certainly more cross-examination, at least for a minimum of an hour, perhaps
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more here. this is the part of the trial where rick gates really has to earn that plea agreement he has with the government. he's been forced to make some damaging admissions not just about the crimes he committed and the crimes he says he committed with paul manafort but also about his own personal character flaws -- lying, stealing, heating on his wife, all of that coming out in court on cross-examination and one of the most interesting things i think beyond the cope of this trial, there was also a little bit of talk about what manafort and gates did when they worked for trump campaign in 2016. manafort of course was the campaign chairman, he left and mr. gates stayed on all the way through the inaugural period and there was some testimony from gates yesterday that even when
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manafort left the campaign he was still trying to work it, one example was trying to get a banker who'd helped him get a loan to be nominated for secretary of the army, poppy. >> that is significant. joe, thank you very much. let's talk about that and more with paul callan, our legal analyst. let's jump off on that. the jury heard the extent to which manafort and gates worked for the trump campaign, the prosecution showed and presented these e-mails where you see manafort imploring gates to help him, to help a banker by -- to help make inroads with the campaign. why is that significant? >> in a couple ways in this trial. if judge initially was preventing prosecutors from even mentioning the trump name during the trial. now we're seeing links to the trump campaign. in this particular instance,
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manafort is in deep trouble by 2015. he's run out of money, he's broke and he starts trying to figure a way to avoid taxes by saying that income were loans from banks and gates in the background is following instructions and dealing with this banker, steven caulk, who we later find out they're pushing with trump to name him as secretary of the army. >> obviously he was not named. the attempt here is what's -- >> exactly. it shows they were trying to use their leverage with the trump campaign to engage in illegal banking activities. >> we know that a lot more about rick gates this morning, frankly, because of what he admitted than we did 24 hours ago, among them that he was unfaithful to his wife, that he embezzled money from his former boss, that he faked an investment document, that he lied to investigators earlier this year after he had been
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spoken to by them about a plea deal then paul manafort's lawyer asked him this and let me read it verbatim. "after all of the lies you told and fraud you committed you expect this jury to believe you?" gates response, yes, i made a decision, i'm here to tell the truth, mr. manafort had the same path, i'm here. he's saying i'm cooperating, manafort's not therefore believe me. how successful do you think manafort's defense team was? >> i thought overall the defense team has been very effective in cross-examining rick gates. this is always a down side for the prosecutor when you call somebody turning against somebody else who made a deal. you can dirty them up for the deal itself but with manafort they've got a secret life they talk about. a secret life with a mistress and he needs money to fund the secret life and they're trying to say all of the feonefarious
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activities blamed on manafort were orchestrated by gates to fund his secret life and he's had the courage to come forward to testify, say prosecutors. >> i think it was interesting, the "new york times" laid this out nicely, that judge ellis at one point got involved and seemed to pick up the defense team's line of argument here because when gates asserted mr. manafort was "very good at knowing where the money was and where it was going" judge ellis jumps in. he points out okay mr. manafort didn't know about the money you were stealing from him so he didn't watch it that closely? >> yeah, when i try cases i hate it when the judge jumps in and starts doing his own questioning. they do this frequently in federal courts. but i think a judge's job is to call balls and strikes, in other words not get involved in trying one side's case or the other so i'm surprised that ellis did that and i think it's a bad practice but i have to tell you, it happens all the time in federal trials. >> much more ahead today in just
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minutes when the trial resumes, paul, thank you so much. ahead, we'll take you to california where firefighters on the front lines are facing off against california's largest wildfire ever. and now we're learning it could be at least a month before they can contain it. we'll take you live to the scene. it's a pea-protein, gluten-free pâté.gman? (whistles) it's a burrito filled with plants pretending to be meat. here we see the artist making an attempt to bare his soul. it's just a gray dot. there are multiples on the table: one is cash, three are fha, one is va. so what can you do? she's saying a whole lotta people want to buy this house. but you got this! rocket mortgage by quicken loans makes the complex simple. understand the details and get approved in as few as 8 minutes by america's largest mortgage lender. it's the ford summer sales event and now is the best time to buy. you ready for this, junior? yeah, i think i can handle it. no pressure... ...that's just my favorite boat. boom. (laughs)
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northern california has burned dozens of homes to the ground. it's scorched nearly 300,000 acre. to get a sense of how large this is, it's grown to the size of los angeles but fire crews may finally be getting help and gaining ground against it. let's go to dan simon who is with me from california. >> the fire has slowed down significantly but you're still talking about a mind-boggling number. 450 scorched miles. the fire swept through this valley and came upon this house behind me, one of 75 homes destroyed. this was somebody's dream house and the homeowners say they did everything they could to protect their home from wildfires. they cleared the area of brush, set up this defensible barrier with the rocks and gravel but in
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their words, the fire had another agenda, take a look. >> i can't imagine what it's luke to go through this. what's the hardest thing? >> i just want to go home. yesterday when i arrived all the stucco was standing, everything else had burned but the stuck woe was up and it was real unstable and that was hard to see because you could tell where the staircase and everything was and it was like trying to picture what our home is like. >> and of course there are so many people throughout the state who are grappling with similar emotions. you have 17 major wildfires, 13,000 firefighters on the lines. more in than in any other point in state history and you have fire fight from from overseas, some from new zealand and australia. the fire continues to be fuelled by dry brush and high
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temperatures. hopefully they'll begin making even more progress. we're talking about 34% on co-en tim kainement. >> she's saying that was our home and of course all you want to do is home home and they can't. that's the reality for so many people across california. thank you for the reporting. ohio's special election is too close to call. the republican candidate has a slight lead. democrats not giving up the fight, joining me next the vice chair of the dnc to talk about this razor-thin race.
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we have some breaking news to bring you right now. new york congressman chris collins has been indicted with securities fraud, wire fraud, and making false statements. these are allegations that have just been announced by the justice department. we're getting reporters up on this. we'll have more in just a
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moment. before that, back to ohio. cnn not calling a winner the race for ohio's 12th congressional district because it's that close. troy balderson holding a slight lead over democrat danny o'connor. balderson claiming victory, o'connor not conceding. can democrats pull this off? vice chair of the dnc michael blake joins me now. nice to have you with us. >> great to be with you. >> when you look at that race. the predecessor, the republican won by 35 point, the president won by 11 points. if the democrat can pull this off, it's huge for you guys. even coming this close is huge for you guys. republicans outspent democrats five times. should democrats have spent more? >> we made incredible investments and we want to thank our staff and volunteers in the state and dnc for this but when we think about this race, this is a seat the republicans should have easily. the fact that we are having this conversation where there are
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thousands of ballots still out, republicans should be very scared. 60 seats across the country are more competitive. there's a reason why this momentum is happening. we invested from the dnc, we'll do many. >> i had david urban on who is a strategist for the trump campaign. we were talking about ohio 12. here's what he told me. let's play that. >> these folks are blue dog democrats, both danny o'connor as well as conor lamb, both have said they would not vote for nancy pelosi for speaker, they are trying to distance themselves from the democratic party and run as republicans. >> he's saying you guys, these guys aren't running as democrats, what do you say? >> i laugh. he's giving you an urban smith. democrats have been fighting for jobs and opportunities. republicans have had a tax bill that has been a failure. we've been fighting on medicaid expansion, they want to take your health care away.
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we are fighting for the people, they are not. when we talk about i will vote, it's a vision from the dnc of how do we get 30 million people to vote who haven't voted in midterm elections? we have an agenda to run on, that's why danny oco'connor did so. we. >> rnc chairwoman rhonda mcdaniel said this and i quote. voters are tired of democrats' message of resist and obstruct. and i was looking on twitter and you posted a video of you talking about getting out the vote and here's what you said about republicans. play it. >> >> they are being very clear, they don't want you in the process, they don't want you involved, they don't care about your voices. you want to be engaged, vote out republicans. >> you want to be engaged, vote out republicans. that was a very clear message, what i didn't hear in that message was vote for us democrats because here is what we stand for. is your party missing more of that? >> not at all. poppy, as you know from media we
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shouldn't take 30-second clips and make that an overall. when we talk about overall messaging, we've been very clear. we are fighting for jobs, education and health care but we cannot ignore what republicans have stood for. they're putting kids in cages -- >> i watched the whole clip, you could have posted as long as a clip as you want. >> it was 60 seconds. >> you said come to me, we'll talk about education and criminal justice reform but your main message was go to the polls to vote out republicans. is that a winning strategy for democrats come november? do you need more. >> you just said what i talked about, vote for education, vote for jobs and vote out republicans. >> you say this now. >> is another effort. look at what happened in michigan. michigan had women winning up and down the ballot because of a positive message. what happened in the state of washington, the fact you had an incumbent republican struggling, because we are talking through
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how democrats are fighting for jobs and education and health care. >> so building on my question is robby mook, hillary clinton's former campaign manager who warned as you red in the "new york times" in his opinion piece, he warned democrats sort of a flag of warning here and he said democrats need to not focus just on the president's controversies and if they do that they keep focussing the public eye on that, the shiny object, instead of the implications of his policies. does he have a point for your party? >> he has a point but it's wrong. you can't ignore the fact that it's inhumane, racist and discriminatory that there are kids in cages rather than schools. you cannot ignore your republican party that's been silent on misogyny. you can't ignore these things. so democrats are fighting for the people. we can't ignore the absurdities of what's going on in d.c. and
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how they have impact on if ground and your previous segment, part of the conversation, you can't ignore the national conversation on the ground so going into november. why have we had 44 state legislative flips? why do we have doug jones and conor lamb? because we are fighting for people in a direct way. we won't be silent about what republicans are talking about why simultaneously talking about our vision. democrats are fighting for jobs, education, and health care. republicans are trying to take those elements away. >> this is a fight that continues. we'll see what happens in ohio, specifically it continues through november. michael blake, thank you so much. assemblyman for joining me, vice chair of the dnc, i have to jump because i have to get back to breaking news. appreciate you being here. all right, back to our breaking news, the justice department just moments ago announcing that republican congressman chris collins of new york has been indicted on securities fraud. shimon prokupecz is with me and has the details. this is significant. these are allegations from the justice department. walk us through them.
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>> allegations from the justice department, the southern district of new york and the fbi. he was arrested, taken into custody in morning by the fbi in new york. there will be a press conference this afternoon at the southern district of new york so this is related to pharmaceuticals, drug trials. christopher collins, as you said, the republican from new york was taken into custody. he surrendered to his attorney and then went to the fbi. he's charged with securities fraud, wire fraud, false statement and basically this also involves his son cameron collins and another individual by the name of steven czarski. we expect to learn more at this press conference. the 30-page indictment unsealed moments ago so we're going through that to learn more but as you said poppy nonetheless significa significant. he's under arrest and will face
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a judge later on these charges. >> shimon, i'll let you go through that indictment so you can bring us more specific th e there. chris collins has surrendered to the fbi at his attorneys' office right here in manhattan. more in a moment. stay with me. to your healthy routine and see how activia yogurt with its billions of live and active probiotics may help support your digestive health so you can take on your day. start the activia probiotic challenge today. it works or it's free! the first person to survive alzis out there.ase and the alzheimer's association is going to make it happen by funding scientific breakthroughs, advancing public policy, and providing local support to those living with the disease and their caregivers. but we won't get there without you.
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okay. back with our breaking news. i'm poppy harlow in new york. just in to us -- the justice department has announced charges against republican congressman chris collins of new york. the congressman has been indicted, allegations of securities fraud, wire fraud, false statements. very significant allegations against a sitting u.s. member of
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congress. paul cow an, you were a state wide prosecutor in new york. i know you haven't read through the indictment but we know representative chris collins representative a 27th district, western new york. these are very serious charges. he's turned himself over to the authorities, at his attorney's office in manhattan this morning. again the allegations -- securities fraud, wire fraud, false statements, and this also involves his son, charges against his son, cameron collins. >> very unusual. we do see politicians get indicted from time to time. there's no question about that. but a congressman, a sitting congressman, charged with insider trading and these kinds of frauds, it is very, very unusual. extremely unusual. >> these charges were filed with, of course, the securities and exchange commission. let me talk to you a little bit about just reading the beginning of this indictment. the indictment lays out the --
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this is about alleged insired trading at a biotech company called immuno therapeutics limited. in june 2017 collins was on the board of this australian biotech firm called innate immuno therapeutics. if you just would lay out for people what would concentrate insider trading. again, not specific to this case, but what action would be alleged in a case like this. >> people, in general, think about it as, you get an illegal stock tip from somebody who works for the company that the company's going to merge with somebody else or the company's going to develop a new drug, that sort of thing. based on that tip, you go out and buy stock which then rises in value. that's your classic -- that is your classic insider trading charge. now someone who served on the o would have being a saccess to i
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information. did he pass that along to someone else and did he or his friend profit from that. these are the things you'll see with any indictment of this crime. >> this allegation that he, collins, learned non-public information about clinical trials for a drug being developed by the firm. and then the question would be, did he act on that. >> did he act on that. >> did he act on non-public information. that's the question. >> the information's always non-public. if it is published information, anybody who's researching the stock can get information. but if he's got insider information, the law says that's illegal and if he profits from it, that's a crime. >> paul collins, we'll get a quick break in. stay with me. more breaking news straight ahead.
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the trump administration has unveiled a new round of tariffs on goods from china. we are talking about $16 billion worth of chinese imports that
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will be hit with a 25% tariff. a 25% tax. this will start in just a few weeks on august 23rd. 279 products among these, including motorcycles, antennas, different chemical imports, element electronics which is a plant in south carolina who says it will have to shutter, it will have to close its doors and lay off almost all of its employees as a direct result of the tariffs on these chinese imports. the layoffs will start in october. we are talking about 126 workers. the company says it hopes to re-open in three to six months depending on what happens. there could also be layoffs at a different south carolina facility. why? again, because of the tariffs. that is the fear of bmw's largest plant in this country in spartanburg. mart martin savidge reports. >> reporter: it may not look like it, but spartanburg, south carolina, is a war zone, a trade war, thanks to the president most folks here voted for. spartanburg is home to the largest b mcht w plant in the
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world. last year they made more than 370,000 luxury suvs, employing 10,000 people. pumping billions in to the state's economy. is it safe to say how well bmw does is how well spartanburg county does? >> you might could say that because there is a lot of industry in spartanburg county that are directly connected to bmw. >> growth, jobs, and i know that that's brought in a lot of families in to the area. brings money in to the area. >> reporter: spartan duburg's a deep red, meaning in 2016 the county voted 63% for donald trump. but president trump has threatened to place tariffs on imported bmw vehicles and parts. that could make bmws made and sold in america a lot more expensive. the company is already feeling the impact of trump's trade war with china. over 80,000 spartanburg-made bmw suvs are sold in china every
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year. now china's striking back placing tariffs on the american-made vehicles. it is an mick double-whammy of trump's making which bmw says could have negative effects on investment and employment in the united states. in other words, b in. w might have to scale back production and lay off workers in spartanburg. >> i feel like i helped birth bmw. >> reporter: he's a trump backer. how concerned are you now of talk of tariffs and trade war? >> extremely concerned because the ripple effect -- it goes beyond bmw and the automotive industry. >> reporter: he's one of the few republican politicians in the country willing to tell trump he's wrong. >> these tariffs could put the foot on the throat of growth and stop it. we don't need that. >> reporter: other trump supporters we talked to here say they support the president's policies but some are concerned. none wanted to talk on camera. they aren't the only ones reluctant to speak out. many south carolina companies
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are also concerned but fear if they criticize the president's policies, they'll become a target of his twitter rar eter h like what happened with harley-davidson. >> the president's shown you are better off working with this administration on issues and help them get to the right answer. >> reporter: ironically trump's tough talk on trade was part of his appeal to voters in south carolina. now there's growing concern trump's trade war is about to backfire on them. and possibly eventually on him. >> i don't see this issue changing voters' minds. now if you look down the road and there are concerns. >> that was our martin savidge reporting. despite concerns about these tariffs, bmw tells us their plant in spartanburg will soon be making a new car. they say they'll need to hire about 1,000 new employees for that. right now they are still planning on that. good morning, everyone.
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i'm poppy harlow in new york. top of the hour. we begin with breaking news. cnn's just learned moments ago that the justice department has indicted a sitting u.s. congressman. republican congressman chris collins of new york. the allegations against him incredibly serious. the allegations -- securities fraud, insider trading. i want to read for our viewers, before you walk us through the indictment, the allegation is wire fraud, securities fraud, false statements. here is the full statement coming from representative chris collins. "we will answer the charges filed against congressman collins in court and will mount a vigorous defense to clear his good name. it is notable that even the government does not allege that congressman collins traded a single share of innate therapeutics stock. we are confident he will be completely vindicated and exonerated. congressman collins will have more to say on this issue later today." will he


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